Sutton Trading Solutions is to move ahead with the planned launch of GlobalDAT, a proprietary solution for dealing over multiple US and European exchanges and ECNs, following a $1.3 million cash injection from private investment company Tiburon Management.
Under the agreement, Tiburon Management has agreed to purchase 2.6 million newly issued Sutton Trading shares for $1.3 million over the next five months. As part of the deal, Sutton is to retain Tiburon as a consultant for a period of five years in exchange for which Tiburon will be entitled to receive 20% of the net profits of the company.
Proceeds from the share issue will be used to eliminate the remainder of the company's outstanding loans, to fund the launch of GlobalDAT, and for general working capital. GlobalDAT connects European and American stock exchanges and ECN's through one user interface for share dealing, and was designed and developed by Sutton Data Services, a wholly owned subsidiary of the Company.
Jonathan Siegel, chairman and CEO of Sutton Trading Solutions, comments: "This infusion of capital, along with the elimination of all non-trade debt, empowers management of Sutton Trading Solutions, Inc. to deliver on its commitment to provide a complete turn-key cross border equity trading solution for the investment community."